Sentences with phrase «yield credit spreads»

Red lines in the charts above indicate periods where high yield credit spreads were in a widending.

My top three indicators include: a widening of high yield credit spreads; consecutive negative readings in the Chicago Fed National Activity Index; and a negatively sloped, or inverted, yield curve.

So as the safe haven appeal of government debt reduces while the overall quality of corporate credit improves, it's logical for high - yield credit spreads to tighten.

The problem comes because of the scarcity of assets, one reason why high - yield credit spreads have been tightening even as short term funding rates have risen.

US high yield credit spreads seemed to basically slumber through the stock market correction and VIX spike.

Looking back over the past fifteen years, in months when high yield credit spreads were widening, indicating tighter financial conditions and more risk aversion, the S&P 500 outperformed the Russell 2000 by an average of roughly 0.45 percent.

My top three indicators include: a widening of high yield credit spreads; consecutive negative readings in the Chicago Fed National Activity Index; and a negatively sloped, or inverted, yield curve.

Not exact matches

Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures in the financial markets.

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

In a note on Tuesday, Credit Suisse analyst Chris Bolu said that half of the sectors covered by a high - yield index have «elevated credit spreads» or a sign that investors are woCredit Suisse analyst Chris Bolu said that half of the sectors covered by a high - yield index have «elevated credit spreads» or a sign that investors are wocredit spreads» or a sign that investors are worried.

This supports our view that by year end credit spreads will be wider than current levels which was predicated by our belief in higher inflation, yields and volatility in 2018.»

CNBC's Jackie DeAngelis reports faltering crude prices could put high yield energy credit spreads at risk.

In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

This high - yield, or junk, bond market has been getting a lot of attention lately as credit spreads have blown out.

I would argue, then, that both the maturity wall and the action in high - yield spreads this year suggest the credit cycle has probably already peaked.

While credit spreads and leading indicators appear to be fairly well behaved, many have noted the sinister looking shape of the yield curve, near its flattest level since before the global financial crisis (see the chart below).

Gold surges toward $ 1400 / oz, S&P 500 tumbles to 2000, 10 - year Treasury yield to 1.5 %; if credit spreads don't crack (e.g. IBOXHYSE < 500bps) and Mexico peso finds quick low = entry point for risk - takers (especially if Trump protectionist fears allayed); until then best Trump trades = long gold, short EU banks, long US small - cap, short EM.

In fact, credit spreads in many markets are trading at the lowest levels as a percentage of their overall yield in a decade (see chart below).

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

A typical measure of credit conditions are «spreads» — the difference between the yield of 10 - year U.S. Treasury bonds and that of riskier bonds, such as high yield.

Finally, it was a banner year for credit, with spreads narrowing across investment grade, high yield and emerging markets.

That's one way to earn attractive yields while helping to minimize exposure to a turn in the credit cycle and a period of spread widening.

Bond yields are down slightly, credit spreads have remained well behaved while widening subtly, and there has been limited flight to traditional perceived safe havens like the U.S. dollar or gold.

Additionally, with many investors focused on credit risks, particularly in high yield, convertibles may be more favorable relative to spread products.

The markets» low - yield environment hit the bank with tighter credit spreads, which were reflected in a $ 567 million pretax debit valuation adjustment loss.

Jim recently updated an old chart from 2007 showing the relationship between a flattening yield curve and credit spread levels.

Our paper examines a comprehensive suite of volatility measures including actual volatility, volatility implied by option pricing, beta, credit default spreads, preferred stock yields and earnings price ratios.

1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury yields, or between the Dow Corporate Bond Index yield and 10 - year Treasury yields.

That means that the difference in yields or «credit spread» between safe and risky debt has widened sharply.

Again, the result might be at most a small rise in yields on riskless assets matched by an equivalent tightening of credit spreads.

There was a weaker correlation between the ability to trade (daily trading volume, issue size and frequency of zero - trading days) and credit spreads for both investment - grade and high - yield markets.

To some extent, stock market action also implies expectations for slower economic growth, though interest rate signals, such as a flat yield curve, are more suggestive of slow growth than stock market action is, and we've yet to see a substantial widening of credit spreads that would suggest imminent recession.

Credit spreads and U.S. Treasury yields are also outperforming for what would be considered typical of a late - cycle market.

Credit spreads are blowing wider again, so that does put some downward pressure on Treasury yields as «safe havens.»

He controls for multiple economic and financial variables likely to be related to stock market returns (gross domestic product, industrial production, unemployment rate, consumer price index, Federal Funds target rate, term spread, credit spread and dividend yield).

In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.

This additional yield on a riskier credit bond is called the credit spread, and it's measured against a similar duration U.S. Treasury bond.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credit quality.

While the low level of credit spreads in Australia (and in other major bond markets) largely reflects favourable trading conditions for corporates, there is evidence that the search for yield has been a contributing factor.

In doing so, investors are taking on a range of risks such as exposure to changes in the shape of the yield curve, credit spreads or exchange rates.

Investors will therefore require a higher yield than would otherwise be the case for this bond, increasing its credit spread.

If you are looking at a 10 year corporate bond which is yielding 5 % for example, and at the same time the 10 Year treasury bond is yielding 2 %, then the credit spread is 300 basis points (3 %).

Spreads between corporate bond yields and swap rates and the premia on credit default swaps have fallen slightly over the period, and are very low by historical standards (Graph 44).

Like the yield curve, an understanding of credit spreads can uncover value and give you a reading on where markets and the economy may be headed.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

U.S. high - yield bond spreads are 34 basis points, or hundredths of a percentage point, tighter; cover spreads are 21 basis points tighter, and emerging - market credit excess returns are at 3.6 %.

Generally speaking, joint market action in Treasury yields, credit spreads, commodities, and market internals provide the earliest signal of potential economic strains, followed by the new orders and production components of regional purchasing managers indices and Fed surveys, followed by real sales, followed by real production, followed by real income, followed by new claims for unemployment, and confirmed much later by payroll employment.

We prefer an up - in - quality stance in credit amid tight spreads, low absolute yields and poor liquidity.

We prefer to take risk in equities rather than credit, given tight credit spreads, low yields and a maturing cycle.

The credit spread is the yield the corporate bonds less the yield on comparable maturity Treasury debt.